Jet flies high as co draws fresh interest
Shares of Jet Airways soared 11% on Tuesday to . 890.25, after touching a fresh 52-week high of . 896.40 earlier in the day. Total traded volumes were 15 times the two-week average. Analysts said the recent interest among investors in the stock follows the company’s better-than-expected earnings show in July-September.
The buzz is that ‘Pink Panther’ and associates have been buyers of this stock of late. The company’s profit quadrupled in a period, which is normally subdued. Investors have also taken note of the company’s efforts to reduce interest costs. Analysts believe that the airline industry must refrain from increasing capacity for companies’ profits to improve.
Power Grid soars on FPO frenzy
Shares of stateowned Power Grid Corporation rose 5.5% to . 103.75 on Tuesday over five times the twoweek average traded volumes. Interestingly , the frenzied buying of Power Grid shares in the secondary market at this price comes when its follow-on public offering (FPO), which has opened on Tuesday, is accepting bids at . 85-90 apiece. The sudden jump in premium in the current market price to the FPO price may entice investors, who see an opportunity to buy in the FPO and sell it at a higher price, to subscribe to the public issue.
But the question is, will this premium sustain even after the public is-sue closes on Friday ? There have been instances in the past where share prices of state-owned companies have shot up ahead of the FPO, but slid soon after the issue closed. Traders, who borrowed to buy in the FPO and sell on listing of the fresh issue to make a quick buck, lost money in the process.
Contributed by Harish Rao & Nishanth Vasudevan
Shares of Jet Airways soared 11% on Tuesday to . 890.25, after touching a fresh 52-week high of . 896.40 earlier in the day. Total traded volumes were 15 times the two-week average. Analysts said the recent interest among investors in the stock follows the company’s better-than-expected earnings show in July-September.
The buzz is that ‘Pink Panther’ and associates have been buyers of this stock of late. The company’s profit quadrupled in a period, which is normally subdued. Investors have also taken note of the company’s efforts to reduce interest costs. Analysts believe that the airline industry must refrain from increasing capacity for companies’ profits to improve.
Power Grid soars on FPO frenzy
Shares of stateowned Power Grid Corporation rose 5.5% to . 103.75 on Tuesday over five times the twoweek average traded volumes. Interestingly , the frenzied buying of Power Grid shares in the secondary market at this price comes when its follow-on public offering (FPO), which has opened on Tuesday, is accepting bids at . 85-90 apiece. The sudden jump in premium in the current market price to the FPO price may entice investors, who see an opportunity to buy in the FPO and sell it at a higher price, to subscribe to the public issue.
But the question is, will this premium sustain even after the public is-sue closes on Friday ? There have been instances in the past where share prices of state-owned companies have shot up ahead of the FPO, but slid soon after the issue closed. Traders, who borrowed to buy in the FPO and sell on listing of the fresh issue to make a quick buck, lost money in the process.
Contributed by Harish Rao & Nishanth Vasudevan
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Market on endless Journey
(Welcome ur comments/feedback on posting 1700th post after a long journey in my blogging)
Src: ET, NCP blog, Mktcalls, Bramesh blog and Myiris etc
